and drink. jon: chasing away the elephants. >> reporter: "america live" starts right now. martha: indeed it does, thank you very much. we start with this fox news alert. this is "america live" i'm in for megyn kelly, i'm martha maccallum. we have just learned that president obama is going to speak in under two minutes. he has just been in very high level meetings about the debt ceiling. we are waiting for a briefing from the white house. wendell goler is standing by, he's been watching this process. we are starting to hear a little bit of what came out of the meeting. what can we expect a couple minutes from now. >> reporter: i expect the president will say there was progress made in the meeting with democrat and republican leaders of the house and senate, though he's unlikely to detail the progress. the only comments made at the start of that meeting were about the sandstorm in phoenix. the president put social security on the table today in an effort to cut up the $4 trillion from the deficit.

republicans are saying they are considering tax loop hopes closing loopholes but they want to utilize that elsewhere. martha. martha: this has been very sense negotiations but the president has signaled that he would like to see serious developments come pwa, and cutting social security is very much on the table right now. do we expect he's going to take any questions? there he is, let's go straight to the president of the united states. >> hello, everybody i'm going to make a very brief statement. i just completed a meeting with all the congressional leaders from both chambers, from both parties, and i have to say that i thought it was a very constructive meeting. people were frank. we discussed the various options available to us. everybody reconfirmed the importance of completing our work and raising the debt limit ceiling so that the full faith and credit of the united states of america is not impaired. what we decided was that staffs,

as well as leadership will be working during the weekend, and that i will reconvene congressional leaders here on sunday with the expectation that at that point the parties will at least know where each other's bottom lines are, and will hopefully be in a position to then start engaging in the hard bargaining that is necessary to get a deal done. i want to emphasize that nothing is agreed to until everything is agreed to, and the parties are still far apart on a wide range of issues, but, again, i thought that all the leaders here came in a spirit of compromise, and a spirit of wanting to solve problems on behalf of the american people. everybody acknowledged that the issue of our debt and our deficit is something that needs to be tackled now.

everybody acknowledged that in order to do that democrats and republicans are going to be required in each chamber. everybody acknowledged that we have to get this done before the hard deadline of august 2nd to make sure that america does not default for the first time on its obligations. and everybody acknowledged that there is going to be pain involved politically on all sides, but our biggest obligation is to make sure that we are doing the right thing by the american people, creating an environment in which we can grow the economy and make sure that more and more people are being put back to work. so, i wanted to thank all the leaders, i thought it was a very constructive meet p- meeting anl be seeing them back on sunday. a lot of work will be done between now and then.

martha: there you have it. the president says that they are working hard on getting something together, in terms of not -- of extending the debt ceiling, $2.4 trillion so that the united states will not go into default. it was very clear that he said that the two sides are still far apart, although he felt that these meetings were constructive. what do we know? we know that the president has signaled that he is willing to give some ground on social security in terms of cutting benefits or perhaps along the lines of extending the age under which benefits could be received. also means testing is something that has been discussed. we don't know whether or not the president has suggested that he would be open to either of those. although social security has been dist cussed on the democratic side. then on the republican side would he know that they have said that they are not going to give any way on raising taxes. however there may be wiggle room here in terms of corporate taxes and removing loopholes, removing the tax breaks that some corporations or perhaps all corp. races getcorporations get.

that would force companies who pay no taxes at all, or very few taxes, those companies would then have to pay those taxes. that would increase revenues to a certain extent and that would fill the coffers with new revenue, but it would come from an eek what yo equal liization,. these are the kinds of ideas that are being put forth in order to find some kind of compromise. jim demint has basically said that he would like to see a number of things, including a balanced budget amendment come forth. we'll talk about that a little bit dash ash i -- in a little w. there is the suggestion that the gop will not allow any specific tax hikes to come into play. we've heard so much about tax hikes on wealthy americans. that is something that the gop said they will not abide or agree to this.

bret baier is joining me now. we didn't get a whole lot from the president except that they are going to work through the weekend and he hopes they'll have something to at least announce a framework of by sunday, right? >> reporter: yeah, martha, i think it's interesting that he said the deal is not done until the whole deal is done. the indication that we're getting now is that this is a big deal, that this is going to be very large, and that everything is going to be on the table as far as bringing the corporate tax rates down, closing tax loopholes, but also cuts in entitlement programs, medicare, medicaid, possibly talking about social security and changing the way it works in the long term. these are big items that obviously could not get done legislatively before the august 2nd deadline. if there was some agreement reached between the leaders to raise the debt ceiling and agree to the framework by which they are going to tackle these big ticket items, that would be a

significant thing. and it seemed like both parties were so far apart it will be interesting to see through the weekend if there can be some negotiated deal on a big framework. martha: it's interesting, bret because we've heard a little bit of what has come out of the preliminary discussions that vice president biden was part of. it seemed as though in those discussions they would talk big dollar figures although they wouldn't talk about specifics about how they hoped to reach those figures. that seems to be where the rub is on all of this. and we don't have any indication right now that we are getting any closer to the specifics on that, do we? >> reporter: no, not publicly, but privately there seems to be a lot more movement than has been talked about. we heard senator jon kyl on the senate floor yesterday saying this whole notion that republicans did not come to the table with any movement on tax revenue increases is false and misleading according to senator

kyl. he said they got to roughly $200 billion in revenue increases, republicans did in that meeting with vice president biden. there were complaints on the republican side that those negotiations were fairly vague on the specific cuts on the administration's side, on the democratic side. so whether you start to hear specifics i think will be interesting after the sunday meeting, but i think something will have to come out concrete, publicly by next week in order for everyone to wrap their head around it in congress. the key point here, martha, is whatever gets done in this back and forth behind closed doors still has to get passed by the house and the senate. john boehner has to sell it to his house members and has to keep some republicans on or in crease the number of democrats who sign onto it, and senator reid has to keep his democratic caucus together on the vote in the senate. martha: we know that john boehner previously said there was no way he could get any tax

hikes through the democratic house and we'll see where we go. bret thank you so much for hopping in. we appreciate your reaction to all of this. they'll be working on the weekend. this story is just beginning, at least this chapter of it. stay tuned for all of that. in the meantime we have fox news alert for you. first of course we watched and waited for the verdict. and then there is the countdown underway now until casey anthony walks out of jail a free woman. the judge in this sensational case ruled that the 25-year-old will be released from jail next wednesday. casey anthony serving almost one thousand days behind bars. two days ago the jury acquitted the florida mother on murder charges which you will remember, very dramatically it played out here. this all stems from the 08 disappearance and the death of her 2-year-old girl caylee who

was 2 years old at the time. the crowds reacting to the sentencing outside the courthouse earlier today. [chanting] >> justice for caylee. >> they should have just thrown away the key for her. >> what do you think about one year for each count. >> i think it's a lot better than walking today. >> there is still injustice there but at least she won't get to pop the champagne court and celebrate with baez and her defense attorney. martha: what a difference a couple of days can make in all of this. check out casey on screen left on tuesday, she was very emotional. that was the moment she was learning she was not guilty on the murder charges. today she was brushing her hair with her fingers as she waited to hear the news from the judge in the courtroom. huge difference in her demeanor today. she was dressed kind of casually, her hair was down, she grinned, sometimes she laughed with the defense team there. anthony quickly went from those big smiles to stone faced when

the judge started to hreu out thalayout thatshe would have toe time in jail, that today was not the day she would be walking out there. we know now it's going to be july 13th. it turns out that the time in jail, which he talked about as consecutive year-long sentence of time now turns into next wednesday, july 13th. here we go. let's be -- we are joined by mark lippman who is the anthony family tporpb for cindy and george anthony. welcome. it's good to have you here today. >> thanks very much for having me. >> what is your reaction to this july 13th for casey anthony? >> unfortunately because i represent the anthonys anything i say might be representative of what they think so i have no comment at this point other than i'm sure the defense is making plans for her to come home. >> what about george and cindy anthony? are they making any plans for her to come home? >> again, unfortunately i can't

comment on that either, all i can say is that they are happy that this trial is over and behind them and are trying to figure out where they are going to go from here. martha: that remains the big question. i feel as though america to whatever extent there's truth in this feels they've got even to know this family. george and cindy anthony had lives before all this started which have been completely put on hold and destroyed i would imagine to some great extent by this whole thin. where do they go from here? >> it's like they have to reinvent themselves all over again. they can't go back to their normal lives. george can't go back to security any more. cindy can't go back to being a nurse. they need to figure out where they can survive financially together as a family and where it takes them they are going to do it together. martha: let me ask you about any further legal action. two questions on that. after the o.j. simpson trial we all remember that the simpson

family sued for wrongful death and won. is there any scenario under which george or cindy anthony would try to press civil or wrongful death charges against their daughter. >> that scenario is theoretically there, but if they plan to do if everything is filed it will be a public record and everybody will know about it. martha: there are any indications that charges will be brought against george and cindy anthony for anything that transpired in this trial. >> i've heard rumblings, mr. ashton was on a show saying there were charges that could be brought against cindy. if there are we will vigorously defend them. the state has a right to bring charges if they deem them to be appropriate. the family has already been through enough and i would hope and pray that they don't. martha: mark lippman, hope to talk to you more on that in the future. that was mark lippman joining us, the anthony's attorney.

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martha: let's take a look at the economy right now. we have the new unemployment numbers that came in this morning. take a look at this weekly number the labor department reported that jobless claims dropped i think by about 14,000 was the number. the level is 418,000, and that's the lowest level that we've seen in seven weeks. new applications, yes as i mentioned down by 14,000. tomorrow the government is going to release the big number. that will be the june report that will get adonis of a tense in trading tomorrow mourn. right now the unemployment rate whoever's just above 9%. we will owe see if that changes when we get the numbers out tomorrow morning. we'll watch for that. the hunt is on for a grizzly bear that mauled a hiker to death inside yellow stone national park. it is the first attack in nearly three decades inside-the-park and it's got everybody on edgement right now rangers are

blocking tourists from the most popular sights in the park. trace gallagher has more on this from our west coast newsroom. quite a story, trace. >> reporter: it really is. anybody who knows yellow stone park would know this happened from a mile and a half from the wappity trail. in yellow stone. this is a very, very popular part of the park. the man was hiking off the trail. they spotted the bear, the man ran, the bear attacked. the woman began screaming. listen to the ranger. >> other hikers on the trail heard the woman's cries for help and she called 911 which summoned the rangers. >> reporter: by the time the paramedics arrived the man had passed away from his fatalities. the victim's name should be released some time this afternoon, martha. very unclear how close the couple got to the bear. you look at that thing right there, even though they are 1500 pounds, they are very fast, they can run upwards of 35 miles

per hour. the reigners say the bear behaved normally protecting its cubs, so the bear will not be captured or killed. in all of yellow stone there are 150 bears. if they get aggressive towards human, which they can, they are often relocated to different areas. there has not been an attack since you said since 1986 in yellow stone. last year, almost exactly a year ago there was a weird attack just outside of yellow stone park where a bear actually attacked sleeping campers killing one, injuring two others. that bear was trapped and killed because it was very aggressive and very predatory. i mentioned 150 bears in yellow stone park. it's a vast area, 3400 square miles of territory. when the victim's name is released, martha we'll get it on the air. martha: what a tragedy. trace, thank you very much. more on that coming up. in the meantime some folks in the private plane industry not

too happy with president obama right now. they say for weeks the president has been demonizing them over tax breaks for their customers. here is what they are talking about from the president. >> if we choose to keep a tax break for corporate jet owners, then that means we've got to cut some kids off from getting a college scholarship. martha: all right, coming up we'll speak to an executive who wants to know why the president has targeted his particular industry, and his thousands of employees in that industry. we're going to talk about that, and plus if you think airport screenings are invasive now, a new terror threat may force even more intrusive methods, so texas congressman ron paul, on why private security companies he thinks are the answer. he wants to get rid of the tsa, and he's coming up. # >> i'm going to put my hand on your pants and my hand on your

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martha: according to president obama people who take corporate jets, and those companies do not need any tax breaks. and now the industry is fuming over those comments that the president has recently made. taste a listen to something along those lines. he said it a few times, here is one of them. >> the debt ceiling should not be something that is used as a gun against the heads of the american people to extract tax breaks for corporate jet owners.

the tax cuts i'm proposing, we get rid of are tax breaks for millionaires and billionaires, tax breaks for oil companies, and hedge fund managers, and corporate jet owners. we choose to keep a tax break for corporate jet owners, then that means we've got to cut some kids off from getting a college scholarship. i think it's only fair to ask an oil company or a corporate jet owner who has done so well to give up that tax break that no other business enjoys. martha: the jet industry is none too pleased with those remarks as you might imagine. they say they'll have to put jobs and contracts at risk as a result of all this. we are glad to be joined by james k. coine who is the president of the national transportation association. nice to have you today. >> nice to be with you. martha: why is he going after

you so much. >> we want to congratulate president obama as being the largest user of private jets in order to get his job done. leaving that aside, of course, we are very, very upset about what he is saying about the -- what he alleges is the lack of taxes paid by corporate users. this is fundamentally a ploy that he's using right now in the middle of this debt crisis to try to divert attention away from the real issues of cutting spending and trying to bring economic growth back to the country and have more jobs. but trying to demonize a whole industry like this is really going to lead to fewer jobs in america, fewer export growth, hurt a lot of innocent men and women at a time when corporate america is paying some of the highest tax rates in the world. martha: i know that the corporate jet industry and private ownership industry has been hit very hard over the past several years, obviously, because so many companies have pulled back and wealth year

individuals have pulled back. were you all feeling as if things were just starting to turn around for you? has your economy and business been looking up a little bit, and if so what has the impact of this been on that? >> exactly right. the industry went into a huge nose dive at the beginning of the obama administration. he spoke against our industry in his first state of the union address, nancy pelosi took some shots as well, there was a lot of uncertainty about americans could support growth of their -- the businesses that support private aviation. so it took us about almost two and a half years to recover from the early attacks on the industry and we were just starting to come out of it. the industry lost about 35% of its sales in two and a half years. this past year has been the first year of modest growth about 5%. now all of a sudden the administration comes at is again with this huge attack and we are really worried that a lot of buyers who were thinking of coming back into the industry will now pull back and say, well let's wait and we understand

what the tax burdens will be on the industry. martha: isn't it true that the president backed some of these very corporate tax breaks that are enjoyed by this industry himself? >> well it's a little hard to give the president anything other than an f for inconsistency here, because you're absolutely right. twice in the last 12 months he has supported the tax treatment for business aviation, and, you know, it's not that different from most other corporate assets, computers, cars, all sorts of items get the same depreciation, treatment, a five-year depreciation and he's trying to push it up to the level of furniture defresh depr. we think he's being inconsistent with his own words. with the history of tax policy for 20 or 30 years, he's trying to find someone to tkepl on nice and attack. it's a political ploy rather than any sound kind of fiscal policy. martha: mr. coyne thank you very

much. great to get your insight on that. 001% of america that uses corporate jet. we'll keep on top of that and let you know how the story develops. riot teres using fireworks to attack police officers and firefight tphers one city. and alfirefighters in one city. we have the video. the nation's skyrocketing debt and the bitter battle over what to do about it, raising the question, do we need an amendment to the constitution that would say that they must balance the budget in washington? wait until you see the new poll numbers on this. folks. we'll show you those in just a minute and a debate come up on that as well. and what do you think, weigh in on that question, go to foxnews.com/"america live" we've got a question up there for you. if you want to make a comment go to martha maccallum and make a

comment. we'll be right back. ♪

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from cheerios to lucky charms, there's whole grain in every box. make sure to look for the white check. martha: casey anthony becomes a free woman next wednesday, july 13. the judge in orlando sentenced her to four years. anthony has already served the three years and good behavior

behind bars. all that added up she gets out on wednesday. prince william and his bride kate are wrapping up their trip to canada. the royal couple will come to los angeles and rub elbows with hollywood royalty at a gala friday night. retailers are reporting strong sales for the month of june. target and costco say things are picking up a little bit. there is new fallout to tell you about today in the failed fast and furious gun operation as it is known. in a stunning admission this week, the head of the atf revealed to lawmakers that yes mistakes were made within the agency on this. and that it let mexican drug gangs gets their hands on those mistracked u.s. firearms and indeed one of those weapons may have led to the death of a u.s.

border agent. congressman, welcome. goods to have you here today. >> thank you. martha: the atf admitted mistakes were made. what do they mean by that? vie * we had nearly 2,000 weapons that were knowingly allowed to be purchased by true purchasers and let loose. it's not the policy of the atf to allah someone to purchase a gun for somebody sells. that's against the law. you have 2,000 weapons they knowingly let go into mexico without informing or let the mexican officials beforehand. imagine if they did that to us. now when you haved the atf acting director give information to the congress, he has shared with us that the justice department really didn't want that to happen. that's really concerning. martha: now, you get down to the battle between your committee requesting information from the

d.o.j. because you wants to know what did they know about this program, how far up did it go? did eric holder -- how close to him did the get? the department of justice is turning the whole thing on you all now and saying we have been very open and disclosed all the documents we were asked for and said you are making this into a political thing. >> they have redacted more information you can possibly manage. we have shown putting you have on page after page where they we facts dactd the entire -- where they have redacted the entire page. what we are fiernldsing is there were very serious mistakes made. when i was on the judiciary committee i questioned eric holder and asked when he knew about this. in may he said he only knew about it for a couple weeks but most those men offs go back to january. martha: do those memos show they were sent to eric holder or they would have been in his hands?

>> that's one of the questions. the president said mistakes may have been known and the attorney general said he didn't know about it until may? those are questions that still need to be answered. martha: the head of the atf who was interviewed on the 4th of july and disclosed much of what we are talking about. the departments of justice is not happy he's talking about this. he shares with the questionerring during that period that he says yes indeed there is stuff the administration is withholding in this case, right? >> that's the serious allegation and that's the ear just concern. that was from his points of view. one of the issues is wire taps. you need to go fairly senior in the department of justice to get wiretaps signed off. there were a number of wire taps signed off. the claim that the senior most people in the department of justice didn't know about it, i think you would find factually inaccurate. a lot of unanswered questions.

and you have got people who want to step forward and just tell the truth. martha: ken melson says the straw purchases that went to the cartels were under the direction of the u.s. attorney in arizona, dennis burke. he's a white house appointsee. is there anything about that that's odd that this operation would go under him? vie * no, there are a lot of us that believe the department of justice was involved. the senior most people are saying we didn't know about it. it's a he said, she said. we had good whistlele blowers who stood up and said this is wrong, this is what happened. we are trying to figure out what happened. how were these mistakes made. we have 2,000 weapons released into mexico we didn't even know about it. so much later in the process. we'll stay on top of this story as we know you will as well.

the there are moments ago said both parties are still pretty far apart on this debt deal. though he was somewhat positive about the progress being made. so the clock is ticking to this default deadline. lawmakers, will they ever come to an aagreement? it comes to a law-term solution. do we need to change the constitution and put in a balanced budget agreement? we'll debate that moments from now. very interesting angles on that talk. and a priceless sketch from a world famous painter. watch this. stolen in san francisco. and the thief was caught on camera. how did he sneak out with a picasso without anybody noticing. obviously somebody knows who that man is. it's a clear picture. hey, the new guy is loaded with protein! really? 25 grams of protein. what do we have?

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martha: that massive dust storm that blew through phoenix is paying off. the national weather service says the dust storm was more than a mile high and 100 miles long. look at that thing. that's a lot of dirt. now guess who is busy. the pool-cleaning folks. they are describing their business as absolutely die yot i can. look at this video of dirt-filled pool. one car wash said they were cleaning 55 cars an hour. more than double their normal rate. the storm knocked out power to thousands and cancelled flights. the air is a hazy shaved brown today in parts of phoenix. a busy day for the car washing folks. the president spoke a short time ago on the debt talks saying while and congressional leaders agree that they need to raise the debt ceiling, he said they are still far apart on how they

are going to get there in terms of the budget issues. the budget crisis is calling for a long-term solution. that put back on the table a constitutional amendment that may be the answer to keeping the budget balanced. a large majority of americans think so. 72% say they would indeed favor a balanced budget amendment. let's bring in david webb. welcome to both of you. so sally, let me start with you. you think a balanced budget amendment is a bad idea. why? >> an utterly bad idea. instead of sciewght scalpel to surgically execute some cuts and revenue increases, it's like taking a bomb to our economic future and the intent our founders who created the

possibility of government being a spender of last resort for a strategic reason. martha: do you think it founders ever imagined we would be $14.2 trillion dollars in debt? >> no, they didn't. on top of that what they did, article one section 8 says they can borrow on the credit of the united states. it doesn't say they can borrow irresponsiblably. and if we don't have some austerity approaches. if we don't get a balanced budget amendment, we end up the big bomb is the explosion in our debt. 1997, one vote short of getting a balanced budget amendment. 14.6 and growing right now. we are near 100% of gdp with slow growth in the first quarter. and projected slow growth. it simply cannot happen. this is not politics. this is numbers. we need to fix our problems.

our bankruptcy in the long run hurts you are been there are nation. martha: sally, does it bother you, 100 per of the gdp is debt? 200 billion dollars to pay the service on the debt. >> of course those numbers are troubling. they trouble anyone. but larger issue is how do we fix our economy and get it back on the road to recovery. i think what's important to understand is the republicans are using this debt crisis rather than trying to really do the serious work of raising revenues and cutting spending to fix it. they are using it as an excuse to ram through their health agenda to undermine government. otherwise why would over 3/4 of the paul ryan budget go not to reducing the debt, but instead to more tax increases for the rich? this is about choisd. the balanced budge agreement is about choices. do we want to put the pain onto middle class americans by

cutting their medicare? or keep helping the rich? come on. martha: sources said revenues are up 20% and spending is up 60%. the idea that we have to increase revenues. it looks like the revenues are there. >> you could tax everybody in america to try to make up this difference, martha. and it simply couldn't do it. sally hit all the talking points. the difference is i didn't say republican or democrat. i'm talking about the economic path involved in this situation. if government continues to grow it's unsustainable in its cost to the american people. we can pay the debt service. we take in a quarter billion a month. we can pay the debt service. we can cut federal agencies immediately and still take care of the he accepting services and take care of our military. get rid of $200 billion in

duplicative programs. and get an amendment -- martha: the balanced budge amendment idea, it would be discussed and negotiated in terms of wait really means. do we need to arrive as a nation at a figure that is sort of a reasonable amount of borrowing power? maybe if it's 20 per of gdp, maybe that's the max that we would allow the budget to be at to operate at in order to cover emergency expenses. we need to put some kind of framework out there, don't we? this is completely out of control. it's -- the country is going to be in a downward spiral. >> here is the larger issue. the last time we had a come prabl debt to gdp ratio, 20% higher was in the late 1914s and early 1915s when our country was using government investment to recover from an economic crisis where business wasn't spending money.

long term we have a larger issue about rebuilding and restoring and strengthening our middle class. but the way to get there is not by further bludgeoning them by forcing these cuts to the programs that the middle class relies on and small businesses rely on. how are they going to start new businesses without government. >> you hit a great talking point. lower income earners are hurt most when our dollar is devalued. that's a direct took over our debt. the lower the value the more they spend on commodities and base goods. the problem is you are looking at the talking points. i'm looking at the economic math. if we crash the economy which is where we are right now, if we get beyond 18% of gdp of spending, we are going to be in figure trouble. >> american families borrow money every year.

>> not as irresponsiblably as the government. it's unsustainable. martha: sally, thank you very much, david, good to see you as always. she was acquitted of murder. and now casey anthony will be getting out of jail very soon, folks. her legal troubles, though, may not be over. coming up, one guest is the founder of the most prominent search and recovery company that played a large role in the search for caylee. they may bring charges against casey. we'll be right back. hey, dad, you think i could drive? i'll tell you what -- when we stop to fill it up. ♪ ♪ [ son ] you realize, it's gotta run out sometime. [ male announcer ] jetta tdi clean diesel. the turbo that gets 42 miles per gallon. ♪

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martha: there was complete chaos on the 4th of july in till now. police and firefighters responds to a housing project where commercial grade fireworks

started ex floagd a crowd of hundreds of people. police and fire crews arrived. and the fireworks were turned on them. what we are seeing in this radio -- >> reporter: it looks like shock and awe. these things are meant to be fired straight up in the air. you can see. and instead they were being fired horizontally at the police officers. these things are 3-4 inches thick. it's like being fired at by a bottle. the police officers and firefighters were duck. all these fireworks were illegal. they were shooting them off. the dumpster caught fire. the police and firefighters were

called in to put out the dumpster fire. they couldn't get near the dumpster fire because the spectators were in the way. you can see they started turning them on the first responders. and they were hitting them. a number of firefighters and police officers got burned. they in turn had to start firing pepper spray back at speak tie towards and called in for backup so they could disperse this crowd and get them away from firing all these rockets. i want you to listen for a few seconds to what's happening here. they were literally calling from for backup. instead of making any arrests because they way outnumbered. they turned around and left. these were all illegal fireworks. but it was just pack the river from the biggest fireworks show in illinois along the illinois river. next year police and firefighters say they will have a very different response to that housing complex trying to

shut down those fireworks all together. but that with us a bad scene. one of the police officers was take to the hospital. the rest suffered minor burns. you are being fired at by fireworks. martha: they are going to ruin everybody else's fun. a bad situation. thank you very much. there are new threats to air travel sparking questions about security. how secure are we at our nation's airport with all this invasive jeeng have been seeing. should the tsa get out of the business and let private companies step in to do the job? congressmantron paul joins me moments from now and he will explain what he thinks with that. plus in just hour the state of texas is set to execute this mexican national for the horrifying rape and murder of a 16-year-old girl. this was a brutal crime. so why is the administration asking to delay justice? a holdup at a lemonade stand.

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martha: i'm martha maccallum in for mc. a 30-year-old set to die for lethal injection but police a rare plea from the white house that is turning this into a diplomatic circus. a mexican national that was brought to the united states when he was 1-year-old. sentenced to death for the absolutely brutal rape and murder of a 16-year-old girl back in 1994. but after a decade on death row, the defense attorneys now claim that he did not know was entitled to legal help from the mexican government. kris gutierrez joins us live with more on this. >> a lot of people talking about this one. like it or note's even titled to

that legal advice through a 1963 treaty which simply puts. any foreign national in a foreign country has that right. let's take a look at some of the facts. in 2005 the interest in national court of justice says the u.s. is bound by that treaty. but in 2008 the supreme court says only 0 congress can force states to abide by that treaty. congress just last month introduced a bill supporting the treaty but there hasn't been enough time to vote on it. here is what the state department says. >> if we don't set a good example here and allow foreign governments to visit their citizens detained or arrested and having legal difficulties, that we could face reciprocal denial of access for our consular officials. >> so the obama administration

wants the supreme court to delay the execution to give congress time to consider the excuse. only the supreme court or governor rick perry can stop the execution. in one case the supreme court did not stop the execution, and neither did governor rick perry. >> kris gutierrez in texas. texas of course is no stranger to execution. at the end of june there were 314 convicts on death row in the sloan star state. as of june 2010. 23 foreign nationals were among those inmates awaiting execution. the question of protection under this international treaty has come up several times. most recently under president george w. bush. he agreed with an international court ruling that convicts

should be entitled to new hearings. but the supreme court overruled them. he was convicted of raping and killing two young girls. his appeal was rejected an was executed. and there are some very big new developments today concerning the casey anthony trial and her release from jail. we are now learning that she'll be freed just six days from now. next wednesday. so earlier today on "america's newsroom" we watched the sentencing live. watch this. >> the court having previously ajudged you to be guilty of the crimes contained in count iv, 5, 6, and 7, i will sentence you to 1 years in the orange county jail imposing a $1,000 fine on

each count. all four counts to run consecutively to each other, giving you credit for the time that you have previously served. martha: jail time already served, over 1,000 days will count towards her stearns. based on that math that means wednesday will be her last day in jail. casey served a total of 2 years and 10 months in jail. she is ordered to pay more than $46,000 in fines and court costs. so that is where that stands. we'll watch her walk out on wednesday. so riveting new reaction from one of the jurors who decided casey anthony's fate. her name is jennifer ford.

watch this. >> there wasn't enough evidence -- wasn't anything strong enough to say exactly -- i don't think anyone in america could tell us exactly how she died. if you put even just the 12 jurors in one room and write down how caylee died, nobody knows, we would be guessing. >> so it was cause of death? >> how can you punish someone if you don't know what they did. >> the prosecution wasn't able to give you a solid enough picture? >> i have no idea. they didn't even paint a picture for me to consider. how did she die. if you are going to charge someone with murder, don't you have to know how they died, or motive. >> she does not report the death or disappearance of her daughter and she parties. people say that's evidence she is a killer. >> it looks very bad.

the behavior is bad. but bad behavior is not enough to prove a crime. why were you crying after handing down a not guilty verdict? >> not guilty doesn't mean innocence. martha: they said they were sick to their stomachs when they came to that conclusion. but that was the conclusion they came to. jennifer will go on the record with greta va van us van. one person weighing a possible civil lawsuit is the founder of texas he questio equusearch. tim miller is very angry about this entire case. he says one of the worst phone calls he ever received from a family came from cindy anthony. so he organized a search team of

4,200 people to go out there and look for caylee. they spent two weeks combing swamps and woods look for her. it estimates it spent upwards of $100,000. it's non-profit volunteer group. he believes and the other volunteers were used. we'll speak to tim miller on that. he will decide whether he wants to sue casey anthony. big story. so terrorists starting to perhaps go high-tech and now there are some brand-new efforts to stop them from gang access to our most class fired secrets by launching hack attacks. holding hearings on the growing cyber-security case we now face. catherine joins me now. >> the former cia director told lawmakers the next pearl harbor

will likely be a cyber attack. in some cases thousands of times every day government computer are being hacked and the primary culprit is china. >> we have been attacked during my opening statement thousands of time. because one doesn't appear to to be as big as pearl harbor doesn't change the fact that sooner or later america will have to respond in a more aggressive faction to some and be prepared offensively for others. >> reporter: recently the obama administration said loss of a electrical grid or communication network would undermine public confidence and in some cases create panic. >> the critical infrastructure element attached to the networks

can become vulnerable to sciesh attacks. this is not conjecture. it's reality. hackers froab critical infrastructure companies on a daily business. >> reporter: these are now seen with greater frequency. they are often state sponsored. and to embed and operate under the radar so they can consistently steal information from that network. martha: mother nature has her own planned as usual and she is threatening to delay history. the final launch of nasa's 30-year space program has a weather problem in the works. 70% chance of bad weather. may put that whole thing on hold up to a million people are expected to turn out to commemorate the end of a huge era in space travel for this country. for its next program nasa was

suppose to pursue exploration of the moon. but the obama administration scrapped that idea opting for exploration of mars. is this mission going to be a go or not? janice dean is in the fox weather center. how is it looking? >> reporter: not too good. but we have two other windows of opportunity. shepard smith if you are listening you may have to stay around the space shuttle this weekend. it just takes a 10-minute window to get the shuttle launched. all of this moisture moving into the sunshine state. ultimately this is a good news story because they are in exceptional drought. so they need the rain. but we are getting showers and thunderstorms throughout the afternoon. tomorrow let's take a look at our future radar as we head through the 10:30 hour.

then 11:30, liftoff, 11:26. producers tell me if i'm wrong on that. we have the potential for showers and/or thunderstorms in the area. even if it's not on top of the region. within a 10-mile radius that's where we look. there is lots of criteria to look for in terms of weather. cloud layers or lightning within the flight path. for 24 hours prior to launch the average temperature must be around -- depending on direction, peak wind speed 19-34 knots. we'll keep our fingers crossed. martha: it's 11:26 it's supposed to go up. we are hoping shepard smith has an umbrella with him. i have been there and waited for

launches for four days. when it happens it will be a big moment. you may be able to be part of that history. you can watch the final mix of nasa's 30-year space program here live. shepard smith will anchor the live coverage of that launch whenever it happens. coverage will start before that. so stay tuned, folks. keep your fingers crossed. it may go off. in the meantime we have this for you. surprising new research that goes against what you heard about talk opening your cell phone while driving. details on this study and its recommendations. also, a brand-new development in a brazen art heist. we have breaking news. more than that coming up. who would hold up a little kid's lemonade stand? an outrageous robbery coming up.

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martha: they are saying cell phones may not as distracting behind the wheel as they thought. there is a new study that shows the effects of distrangted driving are not so clear. indicating that drivers actually adapt to distractions and cell phone bands may not be effective. i don't know. it defies logic to me. hey, there, doug. >> reporter: the study found there is no con cluesive evidence that hands-free cell phone use is any less risky than hand-held use.

the study found there is no evidence cell phone texting bands have reduced crashes. 34 states have imposed texting bands. the got governor's highway safety association does not recommend restrictions on cell phone use or texting be lifted. but it does recommend that those 41 states which have no cell phone ban hold off on new legislation. part of the reasoning is the rapid pails of technological innovation. >> even five or six years ago texting while driving was something that was pretty new and something we weren't focused on. we don't know what's coming next. >> some interest groups including the interests nag as the motorist association say there are enough distracted driver laws on the books. it shouldn't matter if the driver is distracted by a

conversation with another passenger or eating a snack or talking on a cell phone. what is not in that is the proliferation of distracted driving. 1/8 of all drivers reported texting while driving. martha: thank you very much. doug mcelway in wash. a thief too a by kass off the wall and tucked it under his arm and walked out in broad daylight. they think they may be on to this man in this picture. do you know who is? the murder trial has ended but there may be a lawsuit in the works. we'll talk to a man who say he

may sue the family after this. >> i do regret. when i watched the opening statements san jose baez opened up saying caylee never was missing i said damn you.

martha: art intrigue. a pablo picasso drawing stolen in broad daylight from an art gallery. look at this picture. the guy carrying one of the drawings covered by a newspaper. trace gallagher has been on the case an joins us with a possible break in this one. what's going on? >> reporter: a big break in the case. caught in real life. this guy apparently was caught red hand.

he was up in napa valley with some friends. so he's a fine art fan as well as fine wine friend. he's from who broken, new jersey. police say he went into the weinstein gallery and grabbed the 1965 picasso sketch. he put it under his arm and then he made the key mistake of walking by a restaurant surveillance cam what will be then he got into a cab. the painting is worth $250,000. here is the police chief. >> reporter: obviously where we have video we'll have a lot of success. i would encourage any business in the city really, anything you can do in the way of installing video cameras help us make our investigations more expeditious. >> reporter: the picasso painting was not damaged when

they found it. he had taken the frame off base was planning to ship it back to new jersey. i guess there are some sart dealers in new jersey, i'm not sure. he has a couple of alcohol violations and the trip to napa. martha: i'm starting to fill in the blanks how this might have happened. we figured it was mark from who broken. all right -- he's taking it back to name his apartment. not a good day for him. trace gallagher on the west coast. what does washington, d.c. -- here is a question for you -- have in common with drug addicts? a hard-hitting new ad makes the connection between the two. wait until you see how that's going over with voters. fringe luntz will show us the second by second * response to that analogy. a pot legal twist in caylee anthony's death. the group that helped search for the missing toddler says they

feel ripped off. the founder of that group very angry joining us very soon after his message. you can't gets much meaner than is. can you believe this? robbers held up a lemonade stand. you will hear from this group of kids coming up. >> i got scared and i ran and hid behind the tree. in. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure hh protein. ensure! nutrition in charge!

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martha: we know casey anthony will be freed from jail next wednesday. but there is potential civil lawsuits may be coming in against her. one is texas he questio he can . they spent two weeks combing the swamps and the woods in search of her. they estimate they spent upwards of $100,000. now miller feels he and his fellow volunteers were used in this case. tim miller is the founder of texas equisearch and recovery. i know you are non-too happy

about this. >> i'm not happy. you said something wrong. one of the worst. it was the phone call i have ever received. asking us for help. and it was obvious early on when i first went in the house cindy was worried more about casey being arrested for caylee's disappearance than she was about finding caylee. you know, casey was happy-go-lucky and running around the house in her hot pants and halter top on asking us what we wanted to drink. in four days she never said the word caylee one time. there was never really a thank you for coming. i remember on the 4th day when i sat down with george and cindy and said, you know what, you are not going to appreciate this, but we are going to start a ground search. we start to eliminate everything

in case there is not a live caylee out there. we did many, many things every day cindy would deal with me and they would get a new phone call from a different state on a possible sighting. and we got members all over this country. so we get into our data bank and see what numbers we had in that area. and just plaster these different towns around the country with flyers. as we know now, as we know now, in jose baez's statements, she never was missing. martha: you have been threw this and you know how this feels. so many other families you have been with in this situation. looking back now and having watched the trial and everything, what do you think? what is your neary? what are your thoughts on what you think might have happened here. did this family as you just suggested, did it seem different with them?

>> it was real different with them. when i met with the detective i told them, this isn't a family like any other family i ever worked with. and they said you got up real early, didn't you? they felt the same thing. but you know what? it was about caylee. every person that came there, 4,200 plus sacrificed coming from 13 different states, you know, leaving their job or taking vacation, taking personal leave and many, many tears that were shed. and you are right, tromping through the swamps and the woods. just to be lied to all the time. and you know what? we are 112,000 plus in receipts. but that's not counting continental airlines. they are big you portsers of us

and they give us 50 round trips tickets a year to search for missing lovered ones. and we used 31, 32 of those tickets. when they are gone we have to purchase our own tickets. the resources that were used. san jose baez said she was never missing. we feel terribly used and abused. i made a promise to god and to laura that i would never leave a family alone if there is anything we can possibly do and we'll walk to the gates of hell for these families. but i think we have been put through hell weather anthonys. if there is any way we can recover of any our expenses to help that next family -- we are in the economic time in history. and donations are basically zero. but the phone calls still keep coming in for families that do need us.

yeah, i'm angry. martha: you said that was the phone call you received from cindy anthony. do you belief that phone call was sincere? >> it was serious. martha: do you think she knew anything when you got there? do you think she knew what happened to her grand daughter by the time you walked in that door? >> well she knew that caylee was alive. then she got upset when we said we was going to start looking for a deceased caylee. and i think she was afraid we was going to find her. the phone call i ever got was from cindy anthony and i think cindy anthony regrets the 911 when she says it smells like there is a dead body in the damn car. martha: when you were there searching, did you look in the spot where the body was later found? >> we were fight feet away from that body. one of our members helen from

texas, she was a team leader actually called me and said tim, there is little things floating around in here, but we are in water up to our knees. and that's when i said we have to suspend this search. it was one of the best decisions i ever made. and i got with law enforcement and said, all we dock right now if that little body, if caylee is deceased. and if that body is under the water. and even a person should step on it they won't know what it is and we'll push it down farther in the mud and jeopardize her ever being found. so yes, we were in that area. and she was not findable, and she was never moved. she was put there in the beginning and all the allegations even that were made in the equisearch moved the body. or that the best search team in the country searched that.

so somebody else had to put the body there after casey was in jail. everything is so fabricated. have one fact, caylee is deceased. she ended up there not by her own choice. there will never be justice for her, and you know, i just have too look out for the best interests of he as he can he c , who it will be against. so it's just another stressing time in our life. but that's what this is all about. martha: what about george anthony? you have say it was a strange situation in that house. >> i'm going to tell you how much the anthonys appreciated this. they called me, i didn't call

them. we got some audio that we'll be releasing later on when my attorney says it's okay. this is how much they appreciated our efforts in the very beginning. i was in the backyard with tracy, and one of our members was in the house, george came home from work. and we walked in the door -- here is how much george appreciated it. he said who is this clown i have to meet from texas. this is how much the anthonys appreciated what anybody did for them. martha: you feel cindy knew something. >> i do, yes. i feel as though -- i don't have any evidence of that. but, yes. i have never ever -- we have been involved in over 1,200 cases of missing loved ones across the country and across the world and never ever have i been in a house where the family was less concerned really about their missing loved one and more concerned about their daughter

getting arrested. never ever. martha: that many quite a statement. >> never ever. martha: we thank you very much for being with us today. martha: we'll take a quick break and be right back. ♪ [ male announcer ] what is the future of fuel? the debate is over. ♪ lexus hybrid drive technogy is designed to optimize any fuel source on the planet. even those we don't use yet. because when you pursue perfection, you don't just engineer a future-proof hybrid system. you engineer amazing. ♪ a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver

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martha: washington has been battling it out over the debt ceiling debate. how is that going over with the average car-driving american among us. a new ad takes a look at that and frank luntz takes a look at a couple of things and gets people's reaction. good to see you. good afternoon. >> we took a look at this with swing voters. something that's happening now. it's only july.

we still have a year and four months to the election. but the ads are getting tougher. they are getting more visual and graphic. here is a example run by a pro-democrat group that wants to point to class warfare and are the rich getting richer at expense of the rest of us'. >> the republicans in congress have an agreement with the corporate leaders that underwrite their campaigns. finance tax breaks by cutting education, environmental protection, and aid to pregnant women. shut down the entire government if they have to to get their way. the on question which be will the democrats stop them? call congress and tell them to protect the american dream. stop the republican war on the middle class. martha: at the end it spiked up. >> if people don't get connected to an ad within the first 5 or 6

seconds. the ad wasn't effective and it was too combative, much to negative. and it don't make the case. the public does not respond to class warfare arguments. they have to hear how they have been hurt, not how government spending has been cut. we have a second example. this was created by larry mccarthy on the republican side for ad the creation. this one is totally out of the norm. to my surprise, you are going to watch both the republican and the democratic line climb. let's take a look. >> americans -- even though this country's $14 trillion in debt, washington raised the debt ceiling 10 times in the last 10 years. each time it's like another spending hit. you are the junkies. 41 cents of every dollar you spend is borrowed from places like china. china is like the dealer.

your dealer and addiction control your life. to borrow less you need to spend less. washington could learn a lot from a drug addict. >> did he notice how he got in your face. it's one after another after another. i don't know if tuck pull it back up. but the democratic lines went above the republican line. that ad works because it's something we think, and it's something we feel. they used a junky to communicate that message. just how powerful it is that the american people think the washington is addicted to wasteful washington spending. look how the lines will jump up. martha: there is an idea that i think has a lot of credence, and it's borne out in this ad that the people in the beltway are disconnected from the way the country looks at spending. >> we took a survey and found

70% of americans are self-described mad as hell and not going to take it anymore. that ad reflects that anger. i don't think the republicans or democrats understand how age grit public is going to be if this debt ceiling is a raised and there isn't significant powerful cuts and that the american people don't have to pay for the wasteful washington spending with higher taxes. hell hahell hath no furry like r scorned. martha: we are hours away from the scheduled ex kiewfertion a mexican citizen in texas unless the supreme court steps and stons it. coming up the former solicitor general of texas weighs in on the most unusual of last appeals. we'll be right back. hey, the new guy is loaded with protein!

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martha: this is crossing the wires from washington. we got news the house defeated an amendment to eliminate fund for the operation in libya. this an amendment offered by congressman dennis kucinich from ohio to the defense spending bill. the vote was 229-199 against defunding the ongoing operation in libya. previous efforts to curb that operation also have failed in the house of representatives. the hourglass is running out for a mexican citizen on death row in texas. set to die buy lethal injection a few short hours from now. but the mexican government and the white house are requeafght

stay of execution. he was brought to the united states when he was 1 year old. convicted of an absolutely brutal rape and murder of a 16-year-old girl. the details of which i cannot explain to you, they are so horrific. that happened in 1994. defense attorneys are claiming he didn't know he was entitled to legal help from the mexican consulate. we are glad to be joined by ted cruz. mr. cruz, welcome, good to have you here. >> great to be with you, martha. martha: explain this to us why at this late hour would this be discussed? it seems as if it's something that should have been brought up a long time ago by his attorneys. >> it should have been. his attorneys waited years to bring this up. it's part of the process of capital litigation is lawyers use it to try to delay and execution.

so it's on the eve of the execution they try to bring legal claims. martha: how valid is it? we heard in a previous piece about the legal back and forth. it's been to the supreme court. president george w. bush said he thought this was a good way to protect our own people when they are in other countries to insure they would have the opportunity to talk to the u.s. consulate in other cases. >> two points, number one, humberto reale is unquestionably guilty. he took this 16-year-old girl. he tortured her. he raped her and beat her to death. a truly horrific crime. nobody is questioning his guilt. this is entirely a file over a legal technicality over someone who is indisputably a vicious child rapist and murderer. the second points what this

comes out of is a decision by the world court which is the judicial arm of the united nations. the world court in 2005 issued an ordinarier to the united states to reopen the convictions of 51 murderers across the united states. including reale. fox fought the world court. we went to the u.s. supreme court. i argued the case twice in front of the u.s. spreert court. on the other side was the united nations, the world court and the president of the united states. texas student and fought to defend u.s. sovereignty and we won 6-3. martha: that's the precedent in this case. the question is what happens this time around? >> it's exactly the precedent. the case in 2008 that we won concerned jose mediein who had gang raped and tortured two

young girls. again he was unquestionably guilty and he raised the exact same arguments. what the u.s. supreme court conclude was two things. number one, the world court doesn't have the power to bind the u.s. justice system. the first time in history a foreign court had tried to bind our justice system. number two, the president of the united states doesn't have the to force the u.s. justice system to obey the world court. that's what president obama is trying to do now. martha: what about this argument that comes from the state department that says if we don't allow his defense attorneys to put forward this claim that he was denied his right or was's informed -- wasn't informed of his right to speak to the mexican consulate that our own people will be in jeopardy when they find themselves in trouble with the law in other countries. >> that the. >> i department cal argument that was raised in mediein.

the question is not whether foreign nationals have a light to contact their con you has. nobody disputes that. the question is years later can they raise a claim they didn't raise in trial? you know what's interesting. i mentioned 90 nations came in against us in the medein case. not a single one of those nations enforces the world court in their countries. martha: very interesting. grealts to have you here talk to us about it with -- great to have you here to talk to us about it with so much experience in another case. martha: we have new information to share with you. casey anthony will be walk out of prison. there she is smiling. there is talk about how she looked today. now she'll be a free come and in six days.

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give to save lives and reach for the cure. call now or log on to childrensdiabetesfoundation.org. >> and a held up add a lemonade stand, i kid you not, in a quiet cleveland suburb and the children say teens threatened to beat them up and drove off with their hard-earned cash. this is a big story. >>trace: yes, and the response to the story has been overwhelming, this is in ohio. it's hot. it's humid. lemonade is selling like crazy, so the kids working the stand see this old rusty car and it has teenagers in it. listen to what happened next. >> the teen car pulls up and it look like they getting money to get some so we pour some, and, they come out the car and threaten to beat us up if we

don't give them money. >>trace: so they hand over the pun -- money, but one skid chases the teens and the teens are freaked out and toss the money, and in all the kids believe they lost around $13.50. here is a parent. >> for a lemonade stand that should not happen. this should be simple summer fun and they made it frightening >>trace: there is a sweet ending, they went to the police station and someone, some kind person, donated $20 to make it all right, unfortunately, the lemonade man -- bandits are still on the run but they are in a rusty car with plaid shirts. >> and they know who they are. i hope they feel terrible. >>trace: dreaded lemonade